Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
Obtaining a license for collection in Ukraine
Collection, or the collection and transportation of valuables, is an important component of the financial sector in any country, including Ukraine.
To ensure the safety and efficiency of this process, companies must obtain a collection license from the relevant regulatory body, namely the National Bank of Ukraine.
In this article, we will consider the conditions and procedures for obtaining a license for collection in Ukraine.
The process of obtaining a collection license in Ukraine is determined by the provision regulating the issuance of licenses to legal entities to provide banks with services for the collection and transportation of valuables.
This provision, adopted by the resolution of the Board of the National Bank of Ukraine dated December 24, 2015, number 926, establishes a clear mechanism and requirements for obtaining the relevant license.
Obtaining a license for banks that provide collection services is carried out in the electronic format. This means that companies that meet all the requirements submit applications and necessary documentation electronically.
An important stage of the process is the entry of an account into the Electronic Register. This becomes the actual confirmation of obtaining a license and includes the company in the register of officially licensed banks providing collection services in Ukraine.
Such a mechanism ensures an efficient and transparent process of obtaining a license and also allows the regulatory body to control and monitor the activities of banks that provide collection services, to ensure compliance with the requirements and standards of the financial sector in Ukraine.
Conditions for obtaining a license for collection in Ukraine for applicants:
Applicant legal entity:
To obtain a license for collection, it is necessary to have a registered legal entity. It can be a joint-stock company, an association of legal entities, or another form that provides for the availability of the appropriate legal status.
Share capital:
The legislation of Ukraine establishes the minimum amount of authorized capital from UAH 200,000. for companies that carry out collection activities.
Companies must have sufficient financial reserves to ensure the reliability of their activities.
Professional qualifications and experience:
The applicant must have a sufficient level of professional qualifications and experience in the field of collection.
This may include having qualified personnel who can ensure a high level of safety and efficiency in the collection and transportation of valuables.
Technical support:
The applicant must have the necessary technical equipment to carry out collection activities.
This includes vehicles, communications, and safety systems that meet the requirements of standards and regulations.
Documents regarding the material and technical base of the applicant:
- Copies of technical passports for operational vehicles.
- Copies of agreements confirming the legal entity’s right to own or use operational vehicles.
- Copies of certificates of conformity, confirm that the armored protection of operational motor vehicles meets the standards of Ukraine.
- Copies of certificates of conformity for deposit systems installed in operational vehicles or for safes by Ukrainian standards.
- Copies of documents confirming that the operational vehicles are equipped with a moving object tracking system.
- A copy of the agreement on the provision of services for the mobile object tracking system.
- A copy of the conclusion of the scientific and technical examination regarding the possibility of converting the vehicle.
- A copy of the document confirming the compliance of the design and technical condition of the converted operational vehicle with road safety requirements.
- Certificate of availability of computer equipment, necessary software, and communication tools at the legal entity.
- Copies of documents confirming the provision of collection unit employees with uniforms, shoes, equipment, personal protective equipment, and portable means of communication.
- Copies of permits for the use of firearms by employees of the collection unit or copies of agreements on involvement in the protection of valuables during their transportation of business entities that have the right to provide security services with the use of firearms.
- The obligation of a legal entity to enter into an insurance agreement with an insurance company before the start of providing collection services for full compensation to banks and their clients for losses incurred as a result of the loss of cash during the provision of collection services.
- Copies of purchase and sale agreements (lease), which confirm the legal entity’s right to own or use the premises for at least five years.
Information security and protection:
Ensuring the security of values and confidentiality of information are key aspects of the activity of debt collection companies. The applicant must present a security and information protection plan that meets the standards and requirements.
The process of obtaining a license for collection:
Preparatory stage:
The first step is the collection of the necessary documentation. The applicant must submit an application for obtaining a license, a copy of the founding documents, the charter, and an extract from the Unified State Register of Legal Entities and Individual Entrepreneurs.
Expert analysis:
The regulatory body conducts an expert analysis of the submitted documentation. This stage includes verification of the applicant’s compliance with the requirements of the law and the availability of the necessary resources.
Payment and consideration of the application:
After a successful expert analysis, the applicant must pay the prescribed application processing fee. After that, the regulatory body considers the application and decides on granting or refusing licensing.
When considering the application, the following factors are analyzed:
- registration and internal documents,
- financial status documents,
- documents regarding business reputation,
- documents regarding the ownership structure,
- documents regarding the managers of the legal entity,
- the head of the collection unit,
- documents regarding the material and technical base of the applicant,
- personnel documents.
Issuing a license:
If all conditions are met and the applicant meets all requirements, the regulatory body issues a collection license. The license may have an expiration date and additional conditions that must be met.
Monitoring and responsibility:
After obtaining a license, the company is subject to constant monitoring and reporting to the regulatory body. This is an important step to ensure compliance with all requirements and standards.
Obtaining a license for collection in Ukraine –this is an important process that guarantees the safety and reliability of financial transactions.
Compliance with all requirements and effective implementation of the process allows debt collection companies to work at a high level, ensuring customer trust and efficient work in the financial sector.
This is a very difficult and long path, which is not easy to walk alone.
Therefore, contact the lawyers of “Prikhodko and Partners” to minimize risks and go through this path easily with our team side by side.
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